The future of air forces worldwide is increasingly hinged on the seamless integration of manned and unmanned systems, a vision championed by Dominion Dynamics, an Ottawa-based defence technology startup. This integration is crucial for projecting power, particularly in challenging environments like the Arctic. Dominion Dynamics has recently secured $21 million in funding, marking the largest early-stage fundraise in Canada. This surge in investment underscores the growing interest in defence and dual-use technologies.
The funding round was spearheaded by Georgian Partners Growth LP, a Toronto-based firm known for investing in high-growth enterprise software companies. Additional investors include British Columbia Investment Management Corp., Deer Management Co. LLC (Bessemer Venture Partners), and several smaller angel investors. This financial boost will enable Dominion Dynamics to expand its sensing network, increase its Canadian presence, and develop drones capable of operating alongside fifth-generation fighter jets such as the F-35.
“Defence is no longer just about hardware; it is about software, data, and speed,” said Margo Wu, lead investor at Georgian Partners. “In our view, Dominion Dynamics represents the future of the Canadian ecosystem: deep tech, dual use, and mission critical. We are backing a team that is fundamentally reimagining how Canada and its allies protect their interests.”
Eliot Pence, founder and CEO of Dominion Dynamics, emphasized the strategic importance of integrating manned and unmanned systems. “This is critical for our ability to project power across the Arctic,” he stated. The company is currently developing a simulated environment to test its concepts against various threat scenarios and aims to build a prototype in the coming months. Successful field trials of its sensing software have already been conducted in northern Ontario and the Yukon.
Dominion Dynamics plans to triple its workforce to 75 employees this year. The company recently opened a development office in Toronto and operates a lab in Kingston, Ontario. Additionally, it has leased a 25,000-square-foot factory in Kanata, Ontario, set to open in March 2026. The team includes veterans of the Canadian Armed Forces, and Pence himself brings extensive experience, having led the global team at Anduril Industries Inc., a U.S.-based defence tech company, for four years.
The Canadian government has committed $6.6 billion over five years for defence spending and is expected to unveil its Defence Industrial Strategy soon. Earlier this month, Canada announced over $240 million to support small and mid-sized businesses developing dual-use technologies. This investment aligns with a broader global trend, where rising geopolitical tensions and advancements in deep tech, such as artificial intelligence and quantum computing, have spurred a boom in defence tech investments. According to Crunchbase Inc. data, global funding for venture capital-backed defence startups reached a record $7.7 billion in 2025.
As the defence sector evolves, Dominion Dynamics stands at the forefront of innovation, poised to redefine the capabilities of modern air forces and secure Canada’s position in the global defence landscape.